Chinese investors will make a bold play to back Australian startups looking to make their mark in there, with Boman Group launching a $1 billion fund to bolster trade with out largest trading partner.
Founded in 2011 by Eric Gao and Julius Wei as BMYG Financial Group before rebranding to Boman earlier this year, the Melbourne investment firm is setting up shop in China after striking a partnership deal with the Chinese Communist Party’s Tianjin Municipal Committee to open an office there.
The investment will run both ways, backing startups focused on healthcare, technology and renewable energy in China as well as Australia, to expand offshore.
Boman Group CEO Eric Gao said they’ll assist Australian institutional investors to back fast-growing Chinese companies and vice-versa.
“Australia is rich in natural resources, boasts high-quality food and agricultural products, and leads in healthcare and technology innovation,” he said.
“However, Australian innovations often face challenges due to limited early-stage funding, commercialisation expertise, and a relatively small domestic market, which has been a constant frustration for me. In contrast, China has a vast market, deep industry knowledge in commercialisation, a strong appetite for risk capital in innovation and technology, and is becoming the world’s largest exporter.
“Our mission is to connect the expertise of both countries, bridging capital and innovation to accelerate Australian innovation and commercialisation.”
Boman, which has around $600 million in assets under management, will provide advice and guidance for Chinese companies looking to expand in Australia, as well as helping Australian startups launch in China.
Gao said that launching in Tianjin, 140km southeast of Beijing, is the first step, having obtained a Qualified Foreign Limited Partner Licence.
“We will leverage this platform to access capital, market opportunities, and talent, with the mission of connecting Australia and China for a better world. We are here to collaborate with governments, corporations, academics, and investors to create meaningful connections and opportunities,” he said.
“In 2025, Boman plans to expand further into other cities in China, building on this foundation. I am excited about the years ahead. We are experiencing historic technological breakthroughs across many industries, the high-interest rate cycle is coming to an end, with new geopolitical dynamics on the horizon too.”
A slowing Chinese economy has been a concern for global markets amid heightened geopolitical fears over Taiwan, as analysts expect GDP to fall below 5% in 2024 – below the government’s forecast – and continue shrinking in the next five years, decelerating to 3.3% by 2029, according to the IMF.
China’s battle with the US, heightened by Donald Trump’s return to the White House and threats of tariffs on imports, also looms large, so the challenge for Australia, which has spent the last two years repairing its relationship with Beijing, is to find export opportunities beyond mining and agriculture.
Gao said Boman has a deep, decade-long understanding of the Chinese market, and partnership the first of its kind between Australia and China, with an Australian firm supported by both governments to facilitate both investment and business expansion opportunities.
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